Personal Finance Chapter 12 Study Guide

Health Insurance.Individuals financially benefit from having health insurance because​ it: -provides protection against the high expenses of health care that could eliminate wealth.
Health Insurance.Health insurance received a lot of attention recently​ because: -it has become so expensive.
Private Health Insurance.Private health insurance refers to health​ insurance: -that can be purchased from private insurance companies.
Which of the following is true about private health insurance​ plans? -Physician insurance provides coverage for various forms of physician’s medical care, such as office consultations.-Hospital insurance provides coverage for individuals who require care from a hospital, up to a specified limit.
Health insurance is offered​ by: -government and private insurance companies.
Employers that offer health insurance to their employees as part of their benefits​ package: -are purchased from private insurance companies
Fee for Service versus Managed Plans. Indemnity health care plans reimburse individuals for all or part of the health care expenses they incur from health care providers​ (such as doctors or​ hospitals). Individuals have the freedom to decide which health care providers they want to use.​ Generally, the individuals are billed by the health care provider and must then file a claim with the insurance company. Many indemnity plans have a coinsurance provision in which the insurance company pays a percentage of the bill. With an indemnity​ plan, you have the flexibility to choose your own health care​ provider, but there is a bureaucracy involved in getting reimbursed for bills. In​ addition, indemnity plans tend to be more expensive than managed care plans. Managed care plans allow individuals to receive health care services only from specific doctors or hospitals that are part of the plan. Individuals pay only the amount due after the insurance has paid. Managed health care plans carry lower premiums than indemnity​ plans, but impose more restrictions on the specific health care provider that the individual can use. Managed health care plans are usually classified as health maintenance organizations​ (HMOs) or preferred provider plans​ (PPOs).
Indeminity health care plans: give individuals the freedom to decide which health care providers they want to use.
When considering an HMO or PPO you should ask about: the maximum out of pocket expenses per yearmonthly premiumdeductiblecoinsurance/co-pay amountslimits of coveragehow many doctors are in the planany out of network benefits
When considering an HMO or PPO you should ask about: the maximum out of pocket expenses per year

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